In the Infinite Banking System, most people will purchase a new car or pay off an existing car loan. This example considers the purchase of a $40,000 car using four methods of payments—three traditional methods and the Infinite Banking Concept.

The main source for comparison will be the total cost.

  1. 44-year time period with a new car every 4 years.
  2. Traditional bank financial and IBC financing will be at 8%.
  3. 5% rate of return.
  4. Residual value on leases will be 35% of actual value.
  5. Residual value will allow the same amount financed ($40,000) each time with traditional bank financial and IBC.
  6. Your annual payment, bank financing, and IBC System equals $12,077.